HF 1911

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; correctional state employees retirement plan; including
additional Department of Corrections employees in plan coverage; providing for
transfer of prior service credit for certain correctional employment; amending
Minnesota Statutes 2006, section 352.91, subdivisions 3d, 4b.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 352.91, subdivision 3d, is amended to read:

Subd. 3d.

Other correctional personnel.

(a) "Covered correctional service" means
service by a state employee in one of the employment positions at a correctional facility or
at the Minnesota Security Hospital specified in paragraph (b) if at least 75 percent of the
employee's working time is spent in direct contact with inmates or patients and the fact of
this direct contact is certified to the executive director by the appropriate commissioner.

(b) The employment positions are as follows: baker; central services administrative
specialist, intermediate; central services administrative specialist, principal; chaplain;
deleted text begin chemical dependency counselor supervisor; deleted text end chief cook; cook; cook coordinator;
corrections program therapist 1; corrections program therapist 2; corrections program
therapist 3; new text begin corrections program therapist 4; new text end corrections inmate program coordinator;
corrections transitions program coordinator; corrections security caseworker; corrections
security caseworker career; corrections teaching assistant; delivery van driver; dentist;
electrician supervisor; deleted text begin general maintenance worker; deleted text end general repair worker; deleted text begin laundry
coordinator; deleted text end library/information research services specialist; library/information research
services specialist senior; library technician; new text begin plant maintenance engineer lead; new text end plumber
supervisor; psychologist 1; psychologist 3; recreation therapist; recreation therapist
coordinator; recreation program assistant; recreation therapist senior; sports medicine
specialist; deleted text begin water treatment plant operator; deleted text end work therapy assistant; work therapy program
coordinator; and work therapy technician.

Sec. 2.

Minnesota Statutes 2006, section 352.91, subdivision 4b, is amended to read:

Subd. 4b.

Department of Corrections; procedure for coverage change
considerations.

(a) The commissioner of corrections shall appoint a standing review
committee to review and determine positions that should be included in legislative
requests for correctional employees retirement plan coverage under subdivision 4a.

(b) Periodically, the Department of Corrections will convene meetings of the
review committee. The review committee must review all requests and the supporting
documentation for coverage by the correctional employees retirement plan and must
determine which classes or positions meet the statutory requirements for coverage. The
review committee also must determine if incumbents of and recent retirees from classes or
positions determined for inclusion in correctional employees retirement plan coverage
have prior Department of Corrections employment which also qualified as correctional
service and which should be transferred from the general state employees retirement plan
to the plan and the initial date for each potential service credit transfer.

(c) new text begin The review committee must evaluate and determine the eligibility date for initial
plan participation and all periods of eligibility in the correctional employees retirement
plan.
new text end

new text begin (d) new text end The department must provide a notice of each determination and of the
employee's right to appeal from the review committee to each employee who requested
inclusion. Appeals must be filed with the agency human resource manager within 30 days
of the date of the notice of determination.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner of corrections shall appoint a standing appeals committee
to hear appeals of determinations for coverage. The appeal committee must include
relevant department employees and employee representatives. Appeal committee
determinations are final.

deleted text begin (e) deleted text end new text begin (f) new text end All positions approved for inclusion must be forwarded to the commissioner
of corrections for the preparation of legislation to implement the coverage change and
submission. The commissioner will submit a written recommendation documenting
classes or positions that should or should not be covered by the correctional employees
retirement plan. Documentation of each request and the final determination must be
retained in the Department of Corrections' Office of Human Resource Management.

Sec. 3. new text begin TRANSFER OF PAST MSRS-GENERAL SERVICE CREDIT TO
MSRS-CORRECTIONAL.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility for service credit transfer. new text end

new text begin A person who is eligible for
the transfer of past service credit to the correctional state employees retirement plan of
the Minnesota State Retirement System is a person who:
new text end

new text begin (1) is a current employee of the Department of Corrections of the state of Minnesota;
new text end

new text begin (2) has current retirement coverage by the correctional state employees retirement
plan;
new text end

new text begin (3) has prior service credit in the general state employees retirement plan; and
new text end

new text begin (4) was determined eligible for a prior service credit transfer under Minnesota
Statutes, section 352.91, subdivision 4b, paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Equivalent past member contributions. new text end

new text begin An eligible person who elects
the transfer of prior general state employees retirement plan service must pay to the
executive director of the Minnesota State Retirement System the difference between
the employee contribution rate for the general state employees retirement plan and the
employee contribution rate for the correctional state employees retirement plan in effect
during the period eligible for transfer, applied to the eligible person's salary at the time
that each additional contribution would have been deducted from pay if coverage had
been provided by the correctional state employees retirement plan. These amounts must
be paid in a lump sum within 18 months following the date of enactment, or before the
termination of service, whichever is earlier, plus 8.5 percent annual compound interest
from the applicable payroll deduction date until the date paid.
new text end

new text begin Subd. 3. new text end

new text begin Equivalent past employer contributions. new text end

new text begin If an eligible person pays
the past member contributions under subdivision 2, the Department of Corrections, on
behalf of the eligible person, shall pay to the executive director of the Minnesota State
Retirement System the difference between the employer contribution rate for the general
state employees retirement plan and the employer contribution rate for the correctional
state employees retirement plan in effect during the period eligible for transfer applied to
the eligible person's salary at the time that each additional contribution would have been
deducted from pay if coverage had been provided by the correctional state employees
retirement plan. These amounts must be paid by the department in a lump sum within 30
days after the date on which the executive director notifies the department that the amount
under subdivision 2 has been paid, plus 8.5 percent annual compound interest from the
applicable payroll deduction date until the date paid.
new text end

new text begin Subd. 4. new text end

new text begin Transfer of MSRS-general assets. new text end

new text begin If the payments under subdivisions 2
and 3 are made, assets must be transferred from the general state employees retirement
fund to the correctional state employees retirement fund in an amount equal to the present
value of the benefits earned by the eligible person under the general state employees
retirement plan, as determined by the actuary retained under Minnesota Statutes, section
356.214, in accordance with Minnesota Statutes, section 356.215. The transfer of assets
must be made within 15 days after the receipt of the payment under subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Service credit cancellation; effect of asset transfer. new text end

new text begin (a) Upon the transfer
of assets under subdivision 4, the service credit and salary credit of the eligible person in
the general state employees retirement plan is forfeited and must be credited to the eligible
person in the correctional state employees retirement plan. The transferred amount of
member contributions to the general state employees retirement fund and the principal
amount of the equivalent past member contributions under subdivision 2 must be credited
to the person in the event of a refund following the termination of correctional service.
new text end

new text begin (b) Service and salary credit forfeited in the general state employees retirement plan
under paragraph (a) may not be reinstated.
new text end

new text begin Subd. 6. new text end

new text begin Payment of cost of actuarial calculations. new text end

new text begin The expense for the
calculations by the actuary under subdivision 4 must be paid by the Department of
Corrections.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the first day of the first payroll period next following
June 30, 2007.
new text end